By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).
TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 17
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Large number of breakouts with some interesting plays. Stock market holds up trend. Bulls be selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - TMH - AVERAGE
TMH, Knoxville, Ten., provides staffing for medical firms. Annual revenues: $2.1 billion. TMH's stock breaks out today from a seven-week cup-and-handle base. The move carries the stock to a new all-time high. Volume so far today is running at 1.4 million shares, more than double the average daily volume of 548,000 shares.
TTD highlighted TMH as a breakout at our midsession video show.
TMH's stock shot higher in the morning. It cleared its breakpoint and hit an intraday high of 35.88. The stock then trended sideways the rest of the session. (see 10-minute chart)
TMH's block trades show the tape action of the session.
One can see the price for the blocks climbing from $34.02 late on Tuesday to as high as $35.75.
A key bullish trade came in the morning when a block of 19,900 shares crossed the tape at $35.22. That was up sharply from the prior block at $34.02.
TMH provides healthcare professional staffing and administrative services to hospitals and other healthcare providers in the U.S.
The company operates in two segments: Healthcare Services and Billing Services.
The healthcare Services segment services healthcare staffing, clinics and healthcare service programs.
It also services on a fee for service, as well as a cost plus basis.
The Billing Services segment provides external billing, collection and consulting services on a fee basis to outside third-party customers.
TMH's 12-month performance chart shows the stock appreciating 68% versus a 16% gain for the S&P 500 index. The chart also shows doses of heavy insider selling.
TMH's long-term chart shows the stock coming public in late 2009 and trading around 14. The stock pulled back to 11 in 2010. However, since then TMH's stock has been in a strong up trend. The push to a new high is very bullish and could bring in more buying on Thursday.
TMH's daily chart shows the stock forming a classic cup-and-handle base above its rising 50-day moving average line. That is an ideal setup for a breakout.
Today's breakout comes with a widening of the daily spread (range from high to low) and an expansion in volume.
The stock has all the technicals working for it.
The TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend and broke out before the price of the stock. That was a good lead indicator.
TMH's earnings this year should rise 16% to $1.84 a share from $1.59 a year ago, according to analysts. The stock sells with a price-earnings ratio of 19. TTD sees that as reasonable.
Going out to 2014, earnings are projected to climb 11% to $2.04 a share.
Quarterly earnings should show an acceleration in growth which is very bullish. Net for the first quarter should climb 19% and then in the second quarter leap 68%. That could be the key near-term driver for the stock to push higher.
Net for the first quarter should come in at 44 cents a share, up from 37 cents a year ago. The highest estimate is at 48 cents a share.
The prior two quarters (see table) TMH topped the consensus by 3 cents a share and by 4 cents.
For the second quarter, profits should jump to 47 cents a share from 28 cents a year ago.
Strategy Opinion: TTD is targeting TMH for a move to 44 off this breakout. A protective stop can be placed near 33.
TTD rates TMH a good intermediate-term play.
Sponsorship: Very Good. A key buyer recently was 4-star rated Lord Abbett Fundamental Equity C Fund which purchased 622,600 shares. It has a 0.95% stake. The largest fund holder is Fidelity Small Cap Discovery Fund, 5-star rated, which holds a 3.7% stake. It was a recent seller of 500,000 shares.
TMH has 68 million shares outstanding. Institutions hold 77% of the stock.
Insider Activity: Bearish. Blackstone Management Associates has been a heavy seller of the stock at $33.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Team Health Holdings Inc. - (TMH)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - WRLD - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - DGICA - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - WY - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - PBH - ABOVE AVERAGE|
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears be selective. Stock market still holds up trend.
JVA, based in Staten Island, N.Y., produces coffee. Annual revenues: $174 million. JVA's stock breaks sharply to the downside today to set off a short. So far today, JVA is trading 242,310 shares, almost double its normal daily volume of 139,000 shares. TTD sees more on the downside.
TTD highlighted JVA as a short at our midsession video show on the Web Wednesday.
The stock is thinly traded. JVA moved lower in the morning and hit an intraday low around midday at $6.68. The stock then trended sideways into the afternoon.
JVA's tape action shows the recent big block trades. One can see the price for the blocks declining from $7.12 recently to $6.72.
A key bearish trade came in the morning when a block of 3,400 shares crossed the tape at $6.81. That was down from the prior block at $5.97. The stock has remained under pressure through the day.
JVA is a wholesale coffee roaster and dealer in the U.S. It offers coffee products for a variety of consumer tastes, preferences and price points.
The Company's private label and branded coffee products are sold in the U.S., Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.
This fiscal year ending in October, analysts are forecasting JVA's earnings will climb to 96 cents a share from 40 cents a year ago. That is strong results. The technical weakness in the stock could be hinting that results may not match Street estimates.
JVA's chart shows the stock cutting below key technical support. The stock is acting weak.
Strategy Opinion: TTD is targeting JVA for a decline to 5 within the next few months, or sooner. A protective stop can be placed near 7.10. TTD sees JVA as a trading play unless earnings disappoint big.
|TTD's Quality Rating of Stock -JVA - BELOW AVERAGE|
TTD columnist Leo Fasciocco has covered the stock market for over 20 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
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(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)